Clearance Sale for Media Stocks
April 16, 2008 11:52 AM
Caught sight of my favorite media analyst, Pali Research’s Rich Greenfield, on CNBC and he did not disappoint.
He’s kind of like Mikey, the kid in the old TV spot for Life cereal who hates everything. True to form, he bashed just about all companies in the sector, saying there’s a “clearance sale for media stocks.”
But there are seemingly no takers, with much of the sector flat at best. Greenfield said CBS, which was trading at $21.55 a share when I checked, should go out and buy a cable network and start growing something.
Why bother? Discovery Holdings Corp., with its stable of branded networks, isn’t doing that much better, trading at $21.66.
Investors want growth stocks and there aren’t any in media. The real growth, no pun intended, is in fertilizer. Potash Corp. of Saskatchewan was on fire today, trading at $195.87, up another 12% today.
And that’s why I, like Greenfield, can say I never met a media stock I liked.